(Finance) – The new BTP Valore closes the first day of placement with requests for approximately 4.8 billion euros through over 162 thousand contracts. This is what emerges from the data of the MOT managed by Italian stock exchange.
There request was very strong, but still lower than the approximately 630 million recorded in the first edition of the BTP Valore which last June had raised 5.43 billion on the first day and 18.2 billion at the end of the placement.
The second issue of the security reserved for small savers will end on Friday, unless closed early.
The novelty of this new issue of the BTP Valore is that, for the first time with a government bond, savers will receive quarterly coupons which will be calculated on the basis of pre-established and increasing rates over time (the so-called step-up mechanism). On 29 September the series of minimum guaranteed coupon rates was communicated: 4.10% for the 1st, 2nd and 3rd year; 4.50% for the 4th and 5th year. At the end of the placement, the definitive coupon rates will be announced which may be confirmed or revised, but only upwards, based on the market conditions on the closing day of the issue.
The title has a duration of 5 years and an extra final loyalty bonus equal to 0.5% of the invested capital for those who purchase it during the placement days and hold it until maturity.
The investment can start from a minimum of 1,000 euros, always having the certainty of having the requested amount subscribed. The government bond can be purchased at par (price equal to 100) and without commissions during the placement days. The usual preferential taxation for government bonds of 12.5% and the exemption from inheritance taxes, coupons and loyalty bonuses apply to the BTP Valore.
As with the previous issue, the BTP Valore can be purchased exclusively by small savers through their home banking, if enabled for online trading functions, or by contacting their contact person at the bank or post office where they have a current account and the securities deposit account. The placement takes place on the MOT platform (the electronic market for bonds and government securities of the Italian Stock Exchange) through two dealer banks: Intesa Sanpaolo and Unicredit.